Thresholds and rates

The threshold at which SDLT becomes payable on the purchase of a residential property is raised from £60,000 to £120,000 for land transactions from 17 March 2005. As transactions above the threshold are charged in full at 1%, there is no saving for someone buying a house for £121,000, but a purchaser at £119,000 will save £1,190.

The higher thresholds for the 3% and 4% rates remain at £250,001 and £500,001.

The exemption for commercial property in 'disadvantaged areas' is abolished with effect from 17 March 2005. The general threshold for commercial property (£150,000) will apply. Where a contract was entered into up to 16 March 2005, the exemption will be preserved on completion, provided there is no significant variation of the contract.

Stamp duty

Stamp duty, which still applies to transfers of shares, has not been changed by the Budget.